Report prospectus global_mobile_operators_strategies_payments_banking_insurance_assistance

Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance

Global Mobile Operators:
Strategies in Payments, Banking
Insurance and Assistance
Report Prospectus

June 2012

Expertise in financial services
© Finaccord Ltd., 2012 Web: www.finaccord.com. E-mail: info@finaccord.com 1


Prospectus contents

Page

What is the research? 3
What is the rationale? 4
What methodology has been used? 5
Which mobile operator groups are covered within the strategic analysis? 6
How do mobile operator brands covered break down by region and group? 7
What is the report structure? 8
What are the key features of the research? 9
How can the research be used? 10
How can the interactive PartnerBASE™ be used? 11
Who can use the research? 12
What are some of the key findings? 13-16
What is the cost and format? 17
How can the research be purchased? 18
Definitions of mobile payment products and services covered 19



What is the research?
Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance is a new
report and interactive PartnerBASE dataset that provides a detailed worldwide overview of the fast-
growing involvement of mobile operator brands and groups in financial services. For 255 brands
spread across 70 countries, it outlines their activity and strategic partnerships for over 20 separate
financial product and service categories as follows:

• payments: contactless merchant payments; payments via bank card / account; payments via
mobile phone bill; payments via network account; talktime / call credit transfer;
• banking: mobile banking (bank current accounts); credit cards (non-virtual); prepaid cards (non-
virtual); consumer finance / micro-credits;
• insurance: mobile phone, mobile gadget, bill payment protection, identity protection, motor,
household, travel, accident, health, life;
• assistance: home, legal, medical, road.

Across all 255 brands researched, Finaccord identified a total of over 800 distinct product initiatives
and partnerships involving close to 400 banking institutions, payment companies, technology firms,
insurance providers and assistance entities. Moreover, within a separate analysis, Finaccord
summarises the main strategic moves made in financial services by the leading 65 mobile telecoms
groups worldwide.


What is the rationale?
There are a number of reasons for producing this report. First and foremost, and while the precise
magnitude of the opportunity varies by country, the number of customers of mobile operator brands
typically runs into millions or tens of millions which makes them potentially attractive as affinity
partners from the point of view of both financial institutions and financial technology companies; in
any given country, few other organisations possess as many on-going customers as the leading
mobile operators.

Moreover, with growth from established revenue streams tending to slow, as the penetration of
mobile subscriptions reaches maturity, mobile operators are looking to new fields of activity, such as
financial services, to generate fresh sources of income. Indeed, rapid advances in payment and
other financial technologies signify that mobile operators are well-positioned to benefit from growth
in mobile payments and banking.

In addition, the continuous relationship of mobile operators with their customers and the fact that
their brands often command a relatively high degree of trust means that there is also potential for
them to act as intermediaries for insurance and assistance products. Not only do these include
forms of insurance that are linked naturally to their core service, such as bill payment, mobile
gadget and mobile phone insurance, but also mainstream types of life and non-life cover.



What methodology has been used?
In order to gather the data and insights contained in this report, Finaccord employed two main
research methodologies as follows: direct contact with the main international offices of the 65 mobile
operator groups in question, typically with press or investor relations departments, to ask them about
their current and future strategies in financial services; direct contact with the national offices and retail
networks of the 255 mobile operator brands in question, to audit the exact financial products and
services offered and the financial and / or technology partners with which these have been developed,
where not managed internally.

The first wave of research represents the main input into the chapter providing a strategic analysis of
the involvement in financial services of the world's 65 leading mobile operator groups while the second
underpins the chapter analysing the activity of the 255 brands on a product-by-product basis. In both
cases, Finaccord sent its eventual findings to be checked by the mobile operator group and brand
representatives with amendments made to the data in line with any feedback received. The 65 mobile
operator groups covered are shown overleaf with a summary of the breakdown of the 255 mobile
operator brands covered by region and group illustrated on the following page.



Which mobile operator groups are
covered within the strategic analysis?

Aircel China Unicom LIME Qtel Telekom Austria
AIS Chungwa Telecom Maxis Communications Reliance Communications Telenor
Algérie Télécom Deutsche Telekom MegaFon Rogers Communication TeliaSonera
América Móvil Digicel MetroPCS Saudi Telecom Company Telkomsel
AT&T Mobility Etisalat Millicom Singtel Telstra
Avea Globacom Mobily SK Telecom True Move
Axiata Group Berhad Hutchison Whampoa MTN Smart Communications Turkcell
Bakrie Telecom Idea Cellular MTS SoftBank Verizon Wireless
Bharti Airtel Indosat NTT DOCOMO Sprint Viettel Mobile
Bouygues Telecom KDDI Oi Tata Teleservices VimpelCom
BSNL KPN Orange Tele2 Vinaphone
China Mobile KT Orascom Telecom Telecom Italia Vivendi
China Telecom LGU+ Polkomtel Telefónica Vodafone

Note – a full list of the 255 mobile operator brands can be seen in the table of contents for this report
which can also be downloaded from Finaccord's website.



How do mobile operator brands covered
break down by region and group?
Group Number of mobile brand
North America, 13 subsidiaries or affiliates
E&S-E Europe, 33 included in the research
Latin America, 27
Vodafone 23
Telefónica 14
France Télécom 12
N&C Europe, 35 Deutsche Telekom 10
América Móvil 8
Hutchison Whampoa 8
Telenor 8
TeliaSonera 7
Asia Pacific, 69 Etisalat 6
Qtel 6
S&W Europe, 28 Bharti Airtel 5
Singapore Telecommunications 5
Telekom Austria 5
VimpelCom 5
Africa & Middle
East, 50 Note - over 300 groups with a controlling or significant equity
stak e in one or more of the 255 mobile brands are covered
Source: PartnerBASE in total.



What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology and some definitions.

2. Group Strategy Analysis: comprising a summary of the strategies in payments, banking,
insurance and assistance of the world's leading 65 mobile telecoms groups by number of
subscribers. This section highlights the main strategic moves made by these groups in each of
mobile payments, mobile banking and insurance / assistance; in doing so, it covers significant joint
ventures created by these groups (e.g. Isis, Jibun Bank, mpass, Wanda) and identifies external
financial, payment and technology organisations that are engaging with these groups at a strategic
level (e.g. Assurant, Gemalto, Google, Western Union).

3. Brand Analysis: analyses and commentary regarding the provision of the various payment,
banking, insurance and assistance products covered by the 255 mobile operator brands
researched. This includes both the unweighted and weighted provision rates for each product; any
regional variations in the provision rates for each product; where relevant, the degree to which
mobile payment products were found to operate on an international (rather than a purely domestic)
basis; and the weighted competitor shares of partnerships for each product, quantifying which
providers (and, where relevant, payment networks) are playing a leading role in these areas.


What are the key features of the research?
Key features of this research include:

• an overview of strategic initiatives in mobile financial services that are being driven by telecoms
companies at a centralised group level as opposed to the national level;

• coverage of over 25 distinct financial product and service categories including contactless
merchant payments, four other types of mobile payment, mobile phone and gadget insurance, and
various forms of assistance (e.g. home, legal, medical, road);

• assessment of the degree to which 255 mobile operator brands offer these financial products and
services and how the provision rates vary across seven global regions;

• identification of the many banking institutions, payment companies, technology firms, insurance
providers and assistance entities used in this context by these mobile operator brands and analysis
of the partnerships that offer most potential given each brands' number of customers;

• availability of an accompanying interactive PartnerBASE database that details over 800 distinct
product initiatives and that is fully customisable, searchable and filterable, enabling provision and
distribution patterns to be explored across multiple brands, parent groups and geographical regions.


How can the research be used?
You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of
the following ways:

• gain access to a succinct yet thorough summary of the strategic approach to mobile financial
services of 65 of the world's most important mobile telecoms groups – how does your organisation
seem to be positioned relative to its rivals?

• understand the current worldwide picture across all types of financial product and service from
which mobile operators can realistically generate revenues, and how this varies across seven
global regions;

• appreciate which banking institutions, payment companies, technology firms, insurance providers
and assistance entities have been successful in establishing partnerships either at either a group or
national level with mobile operators;

• use the interactive PartnerBASE database to drill down to the full details – see which payment,
banking, insurance and assistance services are offered by which mobile operator brands in which
countries and with which product providers they co-operate in this context.



How can the interactive PartnerBASE™ be used?
Filter by brand Identify partners
Number of
Product Domestic only / Int'l Name(s) of Owner(s) of
Country Name of brand subscribers Product type Operating model Name(s) of payment network(s)
offered? and domestic partner(s) partner(s)
(million)

Japan SoftBank Mobile 28.9 Contactless merchant payments Yes Domestic only Internal Felica
Japan SoftBank Mobile 28.9 Payments via bank card / account Yes Domestic only External partner Credit Saison Credit Saison
Japan SoftBank Mobile 28.9 Payments via phone bill No n/a
Japan SoftBank Mobile 28.9 Payments via network account Yes Domestic only External partner Credit Saison Credit Saison
Japan SoftBank Mobile 28.9 Talktime / call credit transfer No n/a
Japan SoftBank Mobile 28.9 Mobile banking (bank current accounts) No n/a
Japan SoftBank Mobile 28.9 Credit card (non-virtual) Yes n/a External partner Credit Saison Credit Saison American Express, Credit Saison, JCB, MasterCard, Visa
Japan SoftBank Mobile 28.9 Prepaid card (non-virtual) No n/a
Japan SoftBank Mobile 28.9 Consumer finance / micro-credits Yes n/a External partner Credit Saison Credit Saison
Japan SoftBank Mobile 28.9 Miscellaneous payments / banking No n/a
Japan SoftBank Mobile 28.9 Mobile phone insurance No n/a
Japan SoftBank Mobile 28.9 Mobile gadget insurance No n/a
Japan SoftBank Mobile 28.9 Bill payment protection insurance No n/a
Japan SoftBank Mobile 28.9 Identity protection insurance / assistance No n/a
Japan SoftBank Mobile 28.9 Motor insurance No n/a
Japan SoftBank Mobile 28.9 Household insurance No n/a
Japan SoftBank Mobile 28.9 Travel insurance / assistance Yes n/a External partner Sompo Japan NKSJ Holdings
Japan SoftBank Mobile 28.9 Accident insurance Yes n/a External partner Sompo Japan NKSJ Holdings
Japan SoftBank Mobile 28.9 Health insurance No n/a
Japan SoftBank Mobile 28.9 Life insurance No n/a
Japan SoftBank Mobile 28.9 Home assistance No n/a
Japan SoftBank Mobile 28.9 Legal assistance No n/a
Japan SoftBank Mobile 28.9 Medical assistance No n/a
Japan SoftBank Mobile 28.9 Road assistance No n/a
Japan SoftBank Mobile 28.9 Miscellaneous insurance / assistance Yes n/a External partner Sompo Japan NKSJ Holdings

Select country Choose product See operating model


Who can use the research?
1. Mobile telecoms groups: this research will benchmark the activity in payments, banking,
insurance and assistance of your direct competitors and other comparators across major
countries around the world with regional coverage of Africa, Asia Pacific (including Australasia),
Europe, the Middle East, Latin America and North America;

2. Banks, insurance providers and assistance firms: as a consequence of their sheer size, their
on-going relationships with customers and the increasing functionality of the mobile devices
used by those customers, strategic partnerships with mobile operators represent a major
opportunity for financial services institutions;

3. Payment and other financial technology companies: it is often the case for mobile operators
that opportunities in mobile payments, in particular, can only be realised through collaboration
with payment or other financial technology companies, especially as they seek to add
international functionality to their initiatives in this arena;

4. Management consultancies: if you are helping a financial institution or technology company
with its strategy in relation to mobile operators or advising a mobile operator how it can make
money from financial services, then this research will explain the global activity of mobile
operator brands and groups in financial services, saving time and effort on researching the
subject yourself. Expertise in financial services


What are some of the key findings?
1. Provision rates through mobile operator brands vary across the
different payment, banking, insurance and assistance services analysed

Contactless merchant payments 13.7%
Payments via phone bill 22.7%
Payments via network account 22.4%
Talktime / call credit transfer 61.2%
Mobile banking (bank current accounts) 27.1%
Credit card (non-virtual) 23.5%
Mobile phone insurance 36.1%
Mobile gadget insurance 13.3%
Travel insurance / assistance 9.4%
Accident insurance 8.6%
Medical assistance 10.2%
Road assistance 7.5%
0% 20% 40% 60% 80% 100%
Note – the chart above shows provision rates across 12 services; the full report covers 25 distinct types of financial service in total
Source: Finaccord PartnerBASE for Global Mobile Operators



What are some of the key findings? (cont.)
2. Mobile operator brands are utilising a broad array of operating models to develop payment and
banking propositions, including joint ventures that they own in conjunction with other entities

Contactless merchant payments

Payments via bank card / account

Payments via phone bill External partner

Payments via network account Multiple external partners
Captive partner
Talktime / call credit transfer
Joint venture partner
Mobile banking (bank current accounts)
Internal
Credit card (non-virtual)
Other
Prepaid card (non-virtual)
Undisclosed
Consumer finance / micro-credits
.
Miscellaneous payments / banking

0% 20% 40% 60% 80% 100%



3. On a worldwide basis and adjusted in line with the total number of customers of their mobile brand
partners, the top eight providers of mobile phone insurance have a share of relationships of 58.0%

Asurion,
17.5%

other, 42.0%
ACE, 9.3%

Liberty
Mutual, 7.3%

Marsh, 6.2%
Patrimonial
Inbursa, Zurich, 5.4%
Mega Assurant,
3.4%
Corretora de 5.1%
Seguros,
3.7%



4. Key findings from the executive summary include:

• 51 of the 65 major telecoms groups researched by Finaccord were found to have one or more
strategic initiatives in mobile payments, with a further eight groups reporting that they had concrete
plans for the introduction of group ventures in mobile payments in the near future;

• globally, only 13.7% of the 255 brands researched have a scheme for contactless mobile
payments, although this figure is significantly higher in North America, where 30.8% of brands offer
this option;

• the ability to make cross-border payments and transfers is most common in respect of talktime /
call credit transfer schemes, of which 32.1% reported having international functionality;

• with regards to conventional banking products, co-branded credit cards and prepaid cards are
available in conjunction with 23.5% and 8.6% of all brands respectively;

• mobile phone cover is the most commonly offered type of insurance and assistance product, and
is available from 36.1% of brands, with mobile gadget cover being available from 13.3%.



What is the cost and format?
Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance is available as a
standard Adobe Acrobat PDF document and / or hard copy. The interactive PartnerBASE™ that
accompanies it at no further charge is in Microsoft Excel format. Costs for this research set, sister studies
on the same subject and other related titles available at the time of publication are as follows:

REPORT PRICE *
Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance GBP 2,995
Global Mobile Operators: Strategies in Insurance and Assistance GBP 1,995
Global Mobile Operators: Strategies in Payments and Banking GBP 1,995

Global Automotive Clubs: Affinity Marketing Opportunities for Financial Services Institutions and Other Organisations GBP 1,995
Global Coalition Loyalty Programs: Affinity Marketing Opportunities for Financial Services Institutions and Other Orgs. GBP 1,995
Global Retailer Cards: Co-Branded, Loyalty and Private Label Programs GBP 3,995
Global Retailer Insurance: Affinity Schemes in Supermarkets and Other Stores GBP 2,495

Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK GBP 1,995

For UK-based clients, VAT at the prevailing rate will be added to the basic price.
Costs quoted are for a single site user licence only.
For a corporate user licence, please see the next slide for further details.
Invoices can be paid in EUR, at the prevailing exchange rate, if preferred.


How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available at
www.finaccord.com/order_global_apmr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please choose one of the following options:
1. One office, one country: no supplement over and above basic cost of reports ordered
2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered
3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



Definitions of mobile payment products and services covered
As evidenced by this research, the broad field of 'mobile payments' is one in which there is very significant activity on the part
of the mobile operator groups and brands investigated. However, it is actually the case that there are several different types of
'mobile payment' and Finaccord has defined them in this study within five categories as detailed below.

Contactless merchant payments: By means of one or more partnerships established with one or more specific banks and / or
payment networks (e.g. American Express, MasterCard, Visa) and / or payment technology companies, the ability of a
customer to pay for goods or services (usually with a relatively low value) by holding an enabled mobile handset close to a
payment terminal with contactless functionality (e.g. using NFC or RFID technology).
Payments via bank card / account: Payments are taken from a bank card or bank account that has previously been linked to
the mobile phone number. This can be direct, where the receiving party takes the card details, or indirect, where the phone
network guards the card number, in the manner of PayPal.
Payments via phone bill: Payments are billed to the user through their phone bill (either for prepaid or contract customers).
This is typically limited to lower value transactions, and can include goods and services as well as online content; it excludes
transfers to other mobile phones. These payments are made without the use of a bank or payment network. Note that the
purchasing of purely phone-related media such as ringtones, wallpapers, screensavers and games – whether these be from
the network itself or from a third party – are not to be included here; these relatively minor (and well-established) purchases are
excluded from the scope of this report.
Payments via network account: Payments are made from a separate account opened by the customer with the mobile phone
network. Typically these can have extra cash added to them through local dealers or retailers, payments can be made to
companies or private individuals, the user can receive payments as well and withdraw cash from local dealers or retailers.
These accounts can be run by the phone network on its own, and / or with a technology partner and / or with a bank or
payment network. Examples include Orange Money, Airtel Money and M-PESA.
Talktime / call credit transfer: A user can send talktime or call credits to another user's mobile phone number. These credits
must be used for calls and texts, rather than being used to fund general purchases or being withdrawn as cash. For the person
sending the credits, the amount may be either immediately deducted from their prepaid account, or added to their monthly bill,
as appropriate.


Report prospectus global_mobile_operators_strategies_payments_banking_insurance_assistance

Recommended

Recommended

More Related Content

More from Intelligo Consulting

More from Intelligo Consulting (20)

Recently uploaded

Recently uploaded (20)

Report prospectus global_mobile_operators_strategies_payments_banking_insurance_assistance